Business Community: "New Coronavirus Causes More Damage Than SARS," Government: "We Will Actively Support" (Comprehensive)

On the Morning of the 7th, a Business-Government Meeting on COVID-19 for Entrepreneurs Held at the Korea Chamber of Commerce and Industry

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (right), Kim Sang-jo, Chief of the Presidential Office for Policy (left), and Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry (center), are attending a meeting with business leaders on responses to the novel coronavirus at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on the 7th. Photo by Moon Ho-nam munonam@

[Asia Economy Reporters Changhwan Lee, Dongwoo Lee, Sehee Jang] As the novel coronavirus infection (Wuhan pneumonia) situation becomes increasingly serious, business leaders have urged the government to take proactive measures. The government stated that it will mobilize all possible policy tools to minimize the impact on our economy and businesses.

Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry (KCCI), said at a business meeting on the novel coronavirus held on the morning of the 7th at the KCCI in Jung-gu, Seoul, "This novel coronavirus situation seems likely to cause greater damage than previous outbreaks such as Severe Acute Respiratory Syndrome (SARS) or Middle East Respiratory Syndrome (MERS)."

Chairman Park explained, "While SARS mainly affected exports and MERS primarily impacted domestic demand, experts diagnose that the novel coronavirus will deliver a combined blow to both exports and domestic demand."

He expressed concern, saying, "Our export share to China was about 16% in 2003 when SARS occurred, but now it is approaching 27%. The number of Chinese tourists visiting Korea has also increased more than tenfold during this period. However, with factories in China halting operations and travel being cut off, the export recovery trend has been broken, and it is difficult to expect a short-term boost in domestic vitality."

He continued, "Based on feedback from member companies, there are four major types of damage: intermediate goods exporters, domestic finished goods companies unable to procure parts, companies facing setbacks in local Chinese investments, and domestic companies worried about sales declines due to deteriorating consumer sentiment."

Chairman Park said, "I hope the government will make proactive efforts to overcome the anticipated economic impact by distinguishing between micro-level measures tailored to these types and comprehensive macro-level policies. The National Assembly will soon convene a special committee related to the February extraordinary session, and I ask for bipartisan special attention to legislative activities that help manage the situation and boost economic vitality."

Kim Young-joo, Chairman of the Korea International Trade Association (KITA), also said, "After the Lunar New Year, logistics disruptions will occur, and there will be various difficulties in raw material and parts supply. At times like this, the government needs to closely monitor what is happening on the ground and devise appropriate measures."

Chairman Kim asserted, "Many parts are imported over 80% from China, so supply diversification must be expedited. During this crisis, it is necessary to flexibly apply current systems and laws such as the 52-hour workweek."

Kim Ki-moon, Chairman of the Korea Federation of SMEs, said, "Currently, small and medium-sized enterprises have halted production due to the suspension of Chinese factories. When substituting raw materials with domestic products, production costs rise and financial pressure increases. Active government measures are needed."

In response, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "We will devise maximum support measures that the government can provide, including factory operation and export support for large, medium, and small enterprises, measures to revitalize domestic demand including tourism, and alleviation of management difficulties."

He added, "Please actively provide suggestions on areas where government support is needed by collecting opinions and difficulties from related industries without hesitation. We ask for your cooperation to enhance the overall vitality of our economy."

He continued, "It is crucial to take the current situation seriously, maintain vigilance, and prepare and respond proactively to the economic ripple effects. However, it is also necessary to be cautious about excessive fear and anxiety that could overly suppress economic activities of economic agents."

Kim Sang-jo, Chief Presidential Secretary for Policy, said, "We will actively communicate with various companies including large enterprises, SMEs, and small business owners working on the ground to implement field-oriented policies, and multiple government ministries will collaborate to enhance effectiveness. Just as we successfully responded to last year's Japanese export restrictions, we will also respond well to and overcome this situation."

This content was produced with the assistance of AI translation services.